Digital asset products experienced $414 million in outflows as investors shifted to risk-off sentiment amid economic and geopolitical concerns.
Crypto investment products recorded their first weekly outflows in five weeks, totaling $414 million, as reported by CoinShares. This shift occurred amid rising inflation fears, expectations of U.S. Federal Reserve rate hikes, and heightened tensions in the Middle East.
Market Impact and Asset Details
Total assets under management in crypto products fell to $129 billion, a level last seen in early February. Ether led the outflows with $222 million, resulting in a year-to-date net loss of $273 million for the asset.
Bitcoin saw $194 million in outflows for the week, though it remains positive year-to-date with $964 million in net inflows. Short-Bitcoin products attracted an additional $4 million, indicating some investors are preparing for potential further declines.
Solana experienced $12.3 million in outflows, while XRP bucked the trend with $15.8 million in inflows, making it one of the few assets to see positive flows last week.
Spot Bitcoin exchange-traded funds ended a four-week inflow streak with $296 million in net outflows. Spot Ether ETFs continued their downward trend, recording $206.6 million in outflows for the second consecutive week.
This reversal in investor sentiment highlights the influence of macroeconomic factors on digital assets, as detailed in the CoinShares report.
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